The loss or gain on account of revaluation at the time of retirement of a partner is
shared by.........................
(a) Remaining partners (b) Retiring partner
(c) All partners (d) New partner
Answers
ANSWER
On retirement of a partner, it is required to revalue assets and liabilities just as in the case of admission of a partner. If there is revaluation profit, then such profit should bed distributed amongst the existing partners including the retiring partner at the existing ratio i.e., in old profit sharing ratio and if there is any loss on revaluation that is also to be distributed amongst existing partners in existing ratio.
Explanation:
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The loss or gain on account of revaluation at the time of retirement of a partner is shared by.........................
(a) Remaining partners (b) Retiring partner
(c) All partners (d) New partner
The correct answer is :
(4) Balance sheet
Explanation :
The loss or gain on account of revaluation at the time of retirement of a partner is shared by __All Partners__.
In the case of multiple partners in a company, the assets and liabilities are revalued on the retirement of one of the partners in the same manner as in the case of entry of a new partner.
In which company a profit situation arises on revaluation when a partner retires, then this profit is distributed equally among all the existing partners. Thereby the old profit sharing ratio in the current ratio and if there is any loss on revaluation, that ratio is distributed equally among the existing partners.
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Which of the following is position statement?
(1) Trial balance
(2) Profit & Loss
(3) BRS
(4) Balance sheet
The value of abnormal loss is debited on the basis of ?
A. Profit and loss account
B. Consignee's account
C. Consignor's account
D. Consignment account
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